The ACCC focus for 2018

This year, the regulator has outlined its priorities for the
year stating it will focus on consumer issues in broadband services
and energy, competition in the financial services and commercial
construction sectors, systemic consumer guarantee issues, and
conduct that may contravene the new misuse of market power and
concerted practices provisions.

Further to its heightened powers covering the misuse of market
power and related practices, the ACCC has established the
Substantial Lessening of Competition (SLC) Unit. The SLC Unit will
focus on investigations that could give rise to cases under the new
laws. The Unit also has a broader mandate to enhance their
investigation of competition cases.

The ACCC Chairman, Mr Rod Sims, in a recent statement stressed
the importance of higher penalties under both consumer and
competition law. In relation to the Australian Consumer Law (ACL),
legislation was introduced last week to raise penalties from $1.1
million for companies to the greater of $10 million, three times
the value of the benefit received, or where the benefit cannot be
calculated, 10 per cent of annual turnover in the preceding 12
months.

He stated "Currently, the maximum penalties for breaches of
the ACL are, for corporations, approximately one-tenth of the
lowest maximum penalty for breaches of the Competition Law. There
is no good reason for this difference as we have seen cases where
consumer law breaches have led to very substantial harm to many
consumers."

He went on to say "Consumer issues in the provision of
broadband services, including addressing misleading speed claims
and statements made during the transition to the NBN, have become
one of the ACCC's most prominent issues in the past two years and
highlights the importance of both our consumer and competition
focus."

"The first report of the ACCC's Measuring Broadband
Australia program will be released shortly, and our commitment to
truth in advertising related to broadband speeds is making it
easier for Australians to choose a service provider. You have seen
a number of ACCC enforcement actions in 2017 and can expect further
interventions this year."

The ACCC has for some time sought play a role in consumer and
competition issues relating to access to data. Most keenly
anticipated, perhaps, is the ACCC's inquiry into digital
platforms.

"Concerns about the influence of digital platforms have
become prominent in recent years, on many fronts, and this inquiry
will be the first of its kind to explore broadly the competition
and consumer implications," Mr Sims said.

"A key question will be how much consumers know about the
amount and use of the data about them that is collected and sold by
the digital platforms in the form of advertising."